Wont be a CR in my opinion. Share price way to low. Which was...

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02/03/23

14:04

Post #: 66562822
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Originally posted by jamesc666 ↑

Again, while waiting for the webinar on "Biogas, a renewable energy for US industry", I am going through yesterday's 4E and have some further thoughts.

I believe we are actually having positive cash flow from last year's operation if the 11% billed on Ivory Coast was paid in 4Q last year.

Another observation is that we have booked in a net loss of $16m or $18m, our cash out flow was only around $10m. It struck me that many of the expenses booked in were non-cash items. Provisions that can be adjusted and re-adjusted.

So when I had observed that with the net equity of $2.6m balance in our book, it looks very ugly as we have interest payment of $4.3m plus R&D of about $3.7m, plus other losses, our forecasted positive EBITDA of $4m is not going to help much and so a CR of $6-7m is needed.

But it may not be cash that we required as we have $30m in current assets, $9m in term deposit which will be drawing down this year, plus a roughly $14m coming in from Ivory coast this quarter. The loan from Upwell will not be called in the short term and we have another $20m to borrow if needed. So a CR may not be on the table to address the possible negative equity issue.

I think an issue of shares for acquisition of a USA water company would be a very plausible way to bump up our net equity and boost our productive assets and sales channels and in turn, solve the negative equity issue. If this is the step, it would make sense to have our shares valued as high as possible to make the acquisition. ie. the higher our share price, the less dilution to us to acquire that $6-10m asset.

Looking at the strength of support we have despite the ugly 4E in the past 2 days and I now think we are actually OK.

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Wont be a CR in my opinion. Share price way to low. Which was the top 2 holders plan anyhow. Last AGM the special resolution for extra placement cap got a no vote. Bit suss when number 2 holder faison has a vested interest in Upwell water. Our debt secured by assets. Push the share price down lower and lower, company cant raise and in debt to UPwell and bingo, get MABR for free. Ronald mcdonald likely well aware.

Reduced position mid 20s last year when seeing this vote. Still have core holding though.

FLC Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 3.6¢		Change 0.002(5.88%)		Mkt cap ! $38.91M

Open	High	Low	Value	Volume
3.4¢	3.6¢	3.4¢	$23.86K	685.0K

Buyers (Bids)

No.	Vol.	Price($)
1	15000	3.5¢

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Price($)	Vol.	No.
3.6¢	43992	1

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No.	Vol.	Price($)
1	15000	0.035
1	100000	0.034
2	315250	0.033
1	20000	0.032
3	800000	0.031

Price($)	Vol.	No.
0.036	43992	1
0.038	25000	1
0.039	192563	4
0.040	225000	2
0.042	265244	2

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